2017 Key highlights
Balance sheet strengthened
Strong annual sales and production
Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “In 2017, our turnaround strategy to deliver a low-cost, reliable and high performance business progressed ahead of expectations. Santos is now a stronger, more resilient company with the capacity to execute and bring on-line growth opportunities across its core long-life natural gas assets.
“In 2017, we reduced net debt by 23% to $2.7 billion, lowered our free cash flow breakeven oil price by 12% to
$32 per barrel and delivered Australia’s lowest-cost onshore operations.”
Strong operating performance across the core assets resulted in sales volumes of 83.4 million barrels of oil equivalent (mmboe) exceeding the top end of guidance and production of 59.5 mmboe being toward the top end of guidance.
LNG sales volumes were up 10% to a record 3.1 million tonnes following continued strong performance from PNG LNG and the ramp-up of GLNG. LNG sales revenues were up 33% to a record US$1.2 billion.
“Santos’ new operating model has set a disciplined framework to drive shareholder value as we seek to further reduce costs, build production and maximise operating cash flow,” Mr Gallagher said.
“In 2018, we will increasingly focus on the Build and Grow phases of our strategy as we progress growth opportunities in Northern Australia, PNG and Narrabri, and ramp-up drilling in the Cooper Basin and GLNG.”